In Karachi, the Indus Motor Company (IMC) has announced a six-day halt in its production plant due to a shortage of auto parts and components.
In a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday, the automaker stated that production would be suspended from March 6 to 11.
“Given the current low inventory levels of manufactured vehicles and the scarcity of parts and components for vehicle manufacturing due to supply chain challenges, the company has opted to shut down its production plant from March 6 to 11. Any changes to this plan will be duly updated,” the company announced.
Previously, the company had temporarily closed its plant multiple times due to inventory challenges faced over the past year. “It is concerning for an automaker to suspend production for a week. With a new yet experienced government in power, it is imperative for it to promptly announce an industrial policy aimed at promoting industrialization, creating employment opportunities, and curbing inflation,” remarked auto sector expert Mashood Khan while expressing his views to The Express Tribune.
“The upcoming budget will serve as a litmus test for the new government to demonstrate the extent of relief it can provide to the inflation-burdened populace,” he added. Khan stressed that the government should implement austerity measures by reducing unnecessary expenditures in government offices and curbing the import of luxury goods and vehicles.
He highlighted that instead of fostering the growth of new small and medium-sized enterprises (SMEs), many existing units were shutting down due to exorbitant energy costs. “Without adequate support and facilitation for the industry, the government will encounter challenges in revenue collection to effectively manage the country’s affairs,” he warned.
Other market analysts noted that surging inflation had severely impacted people’s purchasing power. They predicted that auto sales might remain subdued during Ramadan but could pick up after Eid-ul-Fitr.
